Market Overview

UPDATE: Goldman Sachs Downgrades Perrigo Company to Sell on Slowing Growth

Related PRGO
#PreMarket Primer: Monday, June 30: U.S. Data To Confirm Second Quarter Recovery
Auxilium And QLT To Merge On Tax Saving Attractions - Analyst Blog
Horizon Inks $660M Reverse Merger With Ireland's Vidara (Fox Business)

Goldman Sachs downgraded Perrigo Company (NASDAQ: PRGO) from Neutral to Sell and lowered the price target from $117.00 to $110.00.

Goldman Sachs noted, "We downgrade PRGO to Sell from Neutral relative to our Attractive coverage view with a $110, 12-month price target for 0% upside (vs. 9% for coverage). Historically, PRGO's revenue/EPS has grown double digits with significant operating leverage. However, we estimate PRGO's growth rate will slow more in line with peers (our five-year EPS CAGR is at 8% vs. MYL/WPI at 9%). While peer multiples have contracted with slowing growth, the PRGO multiple remains high and the significant gap in valuation (20X versus 10X) is becoming more difficult to justify."

Perrigo Company closed at $110.23 on Friday.

Posted-In: Goldman SachsAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

Most Popular

Related Articles (PRGO)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free